FedNat increases cat coverage to $1.23bn

Florida insurer Federated National (FedNet) has substantially increased the coverage it has purchased in the reinsurance while also doubling its retention.

The company increased its total coverage to $1.23 billion this year compared with $563 million in 2013 and more than doubled pre-tax retention.

The renewing structure for July 1, 2014 increases its pre-tax retention from $7 million to $16 million on the first two events. Single event coverage also increased from $420 million to $887.3 million.

The structure includes four layers of single reinstatement catastrophe excess-of-loss coverage. The first layer offers $84 million of cover above the $16 million retention. The second layer offers $125 million x $100 million and the third offers $60.7 million x $227 million. The fourth layer is an optional excess catastrophe layer which offers $69.3 million x $287.7 million.